Privatization (P3)

Privatization of parking assets, known also as a public-private partnership (P3) concession, continues to occur in higher education and government.  Since parking is often a revenue source, it is a target for processes to raise capital for a variety of uses.

CMA has played several roles for its clients in this relatively new version of cooperation between public and private entities.  One role is the analysis of existing and potential revenues and expenses to determine whether parking assets in a particular circumstance will be attractive to private financial groups for a multi-year concession.  A second role (“sell side”) is advising an institution or government entity as it enters into the concession-seeking process and assesses the value of its assets, how to separate them from the rest of the institution, and the effects of those changes on land, long-term planning, personnel, and finances.  The third role (“buy side”) is working with a private investment group to determine the value of parking assets, the nature of existing and desired future operations, transition tasks, and the changes necessary to increase the long-term value and performance of the assets.

To read more about CMA’s P3 experience, please click here.

■ Review of community or regional population and economic growth, taxes, and transportation investment

■ Creation of complex multi-year financial models with options for creating and analyzing alternative scenarios over the life of a concession

■ Analysis of the effects of various operating assumptions on expenses and revenues

■ Preparation of reports for financial and investment groups, as part of their decision making process on the viability of a concession

Services

■ Analysis of existing costs and revenues, and their components

■ Projections of population, parking permits, transient parking, special events

■ Analysis of facilities growth, development, displacement of parking, requirements for parking

■ Assessment of the effects of alternative modes of transportation at present and in the future

■ Assessment of the desirability of parking assets for investment groups interested in P3 parking concessions